Trump Warns of Massive Layoffs if Government Shutdown Talks Fail

Key Takeaways:White House Economic Council Director Kevin Hassett said large-scale layoffs could occur if Democrats refuse to compromise on government funding.President Trump’s government shutdown threat hinges on whether Democrats “act rationally” when Congress reconvenes Monday.Economists warn that prolonged political deadlock could weigh on market confidence and increase economic uncertainty.According to BlockBeats, Kevin Hassett, Director of the White House National Economic Council, warned that massive federal layoffs could occur if negotiations over the ongoing government shutdown fail to make progress.Hassett explained that President Donald Trump’s next steps depend on whether Democrats are willing to resolve the government funding deadlock. “If the president decides there’s no progress, layoffs will begin,” he said, adding that he hopes Democrats will recognize the “common sense” in avoiding further disruption.He noted that if Democrats act rationally upon returning to Congress on Monday, there will be no reason for layoffs. However, the comments have raised concerns over political brinkmanship and its potential impact on both the U.S. economy and investor sentiment.